From the shortage of essential semiconductor chips to the closure of large assembly machines, as well as the volatile car prices and empty sales outlets, 2021 has been a year to remember for car manufacturers and consumers alike. But there has also been an increase in sales of electric cars, and an increase in the transition from sedans to SUVs and trucks in the country.
So, what's next in 2022? For some accounts, it may be very similar, as shortages continue to leave sellers struggling to find consumer goods and consumers to face much higher prices. But consumers will find many other options when looking for an electric car.
Here are the news lines we expect to rule this year:
Continued shortage of products
As Covid-19 attacks, car manufacturers are reducing production and component orders. However, when sales started to rise, they discovered that they could not get all the semiconductors they needed, which led to a significant reduction in production. The industry lost about $ 210 billion in revenue by 2021, according to AlixPartners management consultancy. While the supply of chips is now lagging, it is far from a return to normal and the cut-off will be well worth it by 2022. Worse still, the industry is facing another shortage of contributing to products such as tires and plastics inside and seat foam.
Higher prices for new cars
In total, car manufacturers around the world have produced less than 8 million cars than planned for 2021, due to a shortage of products. Even if production drops again, retailers will not be able to rebuild inventory until 2022, according to analyst J.D. Power Tyson Jominy. As a result, consumers should expect limited options - while prices will continue to rise in price. By the end of 2021, the new standard car will cost $ 45,000, an increase of about $ 8,000 since December 2020, according to industry data.
Familiarity with online car shopping
When America came to a close, the industry got the idea of a novel. As customers can not come to the sellers, the sellers come to them - online. Even after the world has opened up, more and more customers are buying their cars online, and many retailers are setting up drive tests and bringing new cars to the home or the buyer's office. At that point, as there is a nearly empty showroom, American car drivers who are often in a hurry have started ordering their cars and waiting - sometimes for months - to deliver.
The EVs began their journey in a standing position
They accounted for a small percentage of new U.S. car sales, but demand for electric batteries doubled during the first half of 2021. This year may bring a "point," arguing GM CEO Mary Barra, and the explosive EV market. A few things will play a role, starting with a host of new offerings: Analysts expect the number of long-distance models to quadruple this year.
The Impact of Build Back Better
President Joe Biden has placed significant emphasis on the automotive industry. In December, the White House announced its extremely aggressive economic standards, and Biden said it wanted to see EVs reach 50 percent of U.S. sales. in 2030. His infrastructure bill brings funding to the charging network across the country. But other funding, including funding to develop EV marketing incentives, is currently suspended from Congress.
Beginners will continue to move things
The automotive industry had been the most closed club since World War II, but Tesla indicated that it was possible to break the code. Now, some start-ups want to share in their success. Wall Street rewarded a few of the most promising players. Rivian now has more than $ 90 billion in market capitalization, in addition to Ford or GM. But others, like Byton, Lordstown Motors and Faraday Future are struggling and could fall in 2022.
Tesla is taking the heat
At first glance, 2022 should be a good year for Tesla after setting sales and profit records in 2021. A California-based electric car manufacturer has two new plants, one in Austin, Texas; and the other is in Berlin. But a number of important products, including Cybertruck, are far behind the system, as are the next-generation batteries Tesla relies on. Tesla is under pressure from the Chinese government and is facing an additional security investigation by US regulators.
Private cars can stop
Car manufacturers once promised to have a fully automatic car by 2020. However, 2022 can see some success. GM and Mercedes-Benz will launch the first real hands-free one - Level 3 in industry-speak - driving technology for consumers. Others, like Waymo and Cruise, focused on passenger and freight forwarding services. But an ongoing security investigation involving Tesla's Autopilot serves as a warning of how challenging it is to build a completely independent vehicle.
China is getting closer
China is the largest car market in the world, but local manufacturers like Geely and the Great Wall want to reach beyond its borders. Attempts to enter the U.S., the No. 2 global market, have been repeatedly delayed, however. Trade disputes under the Trump administration should not be resolved under Biden. So, although a few Chinese-made products are available in U.S. exhibition halls, including Buick Envision and Polestar 2, a real car crash could take years.